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HomeMy WebLinkAboutOrdinance 1251 - Development Agreement 11-516 - Villa Portofinor _Z12 ZZ-22= ORDINANCE NO. 125170 4 tl, READING iv AN ORDINANCE OF THE CITY COUNCIL O DESERT, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT TO THE PRIOR APPROVALS FOR VILLA PORTOFINO (SOUTHWEST CORNER OF PORTOLA AVENUE AND COUNTRY CLUB DRIVE) INCLUDING: A 161-BED SKILLED NURSING FACILITY, A 150-BED ASSISTED LIVING FACILITY, 288 VILLA UNITS AND 182 CASITA UNITS. CASE NO. DA 11-516 WHEREAS, the Planning Commission by its Resolution No. 2592 has recommended approval of Case No. DA 11-516; and WHEREAS, at said public hearings, said City Council heard and considered all testimony and arguments of all interested persons; and WHEREAS, the City Council finds that the Development Agreement is consistent with the General Plan, as described in the Findings of the City Council Resolution No. and WHEREAS, pursuant to the California Environmental Quality Act ("CEQA") (Pub. Res. Code, § 21000 et seq.) and the State CEQA Guidelines (Cal. Code Regs, tit. 14 § 15000 et seq.), the City is the lead agency for the proposed Project; and WHEREAS, on the basis of the Initial Study, which concluded that the Project will not have significant impacts on the environment with mitigation, the City determined that the Villa Portofino project was subject to a comprehensive CEQA review at the time it was initially approved in 1998. Since that time the project has been partially built -out. The current approvals merely reaffirm the prior approvals, and do not change them in any material way. Staff has reviewed the prior CEQA analysis and current conditions, and confirmed that there are no changes in circumstances or the project that would warrant additional CEQA review at this time. As it is clear that the reaffirmation of prior approvals will not have any significant effect on the environment, the project is categorically exempt. WHEREAS, the City Council of the City of Palm Desert, California, DOES HEREBY ORDAIN, AS FOLLOWS: SECTION 1: That the Development Agreement 11-516, Exhibit "A" attached hereto, by Ordinance No. is hereby approved. SECTION 2: That the City Clerk of the City of Palm Desert, California, is hereby directed to publish this ordinance in the Desert Sun, a newspaper of general circulation, published and circulated in the City of Palm Desert, California, and shall be in full force and effect thirty (30) days after its adoption. PASSED, APPROVED AND ADOPTED at a regular meeting of the Palm Desert City Council held on this day of 2012, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE KLASSEN, City Clerk City of Palm Desert, California ROBERT A. SPIEGEL, Mayor CITY COUNCILAON APPROVED DENTED RECEIVED , _ _ OTHER AYES: NOES: ABSENTS ABSTAINS VERIFIED BY: Original on File with K1 Office EXHIBIT A WHEN RECORDED RETURN TO: The City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attention: City Manager Fee Exempt - Govt. Code 27383 (Space above for Recorder's Use) VILLA PORTOFINO AMENDED AND RESTATED DEVELOPMENT AGREEMENT FOR A PORTION OF THE PROJECT between THE CITY OF PALM DESERT a California charter city and VP LAND, LLC; VP BUILDERS, LLC; and COUNTRY CLUB DRIVE INVESTORS, LLC Dated as of _, 2012 72500.00791 \7577720.1 VILLA PORTOFINO AMENDED AND RESTATED DEVELOPMENT AGREEMENT FOR A PORTION OF THE PROJECT This Villa Portofino Amended and Restated Development Agreement for a Portion of the Project ("Agreement") is entered into and effective on the date it is recorded with the Riverside County Recorder ("Effective Date") by and between (i) the CITY OF PALM DESERT, a California charter city ("City"), (ii) VP Land, LLC, a Colorado limited liability company ("VP Land"), (iii) VP Builders, LLC, a Colorado limited liability company ("VP Builders") and Country Club Drive Investors, LLC, a Delaware limited liability company ("County Club Drive Investors"). VP Land, VP Builders, and Country Club Drive Investors are sometimes individually referred to as "Owner" and collectively referred to as "Owners" herein. VP Land, LLC is also referred to as "Designated Owner" hereunder. RECITALS WHEREAS, to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California adopted Section 65864 et seq. of the Government Code authorizing any city, county or city and county to enter into a development agreement with an applicant for a development project, establishing certain development rights in the property which is the subject of the development project application ("Development Agreement Law"); and WHEREAS, City has adopted an ordinance and regulations establishing procedures and requirements for the approval of development agreements, pursuant to California Government Code Section 65865 ("Development Agreement Procedures"); and WHEREAS, VP Land owns certain real property legally described in the attached Exhibit "A-1" (the "VP Land Parcel"), VP Builders owns certain real property legally described in the attached Exhibit "A-2" (the "VP Builders Parcel"), and Country Club Drive Investors owns certain real property legally described in the attached Exhibit "A-3" (the "Portola Parcel") (the VP Land Parcel, the VP Builders Parcel and the Portola Parcel are collectively referred to herein as the "Property") (for the avoidance of doubt, the existing 72 Villa units identified as Units 1-72 of the Phase 1 condominium plan (described below), and any associated real property rights and interests, the proposed 40 condominium units identified as Units 73-112 of the Phase 2 condominium plan (described below), and any associated real property rights and interests (collectively, the "Excluded Units"), and the land underlying the Clubhouse (as hereafter defined and as set forth in the condominium plans recorded against a portion of the Property) are not intended to be a part of the Property, nor subject to this Agreement); and WHEREAS, In 1998 and 1999, Owners' predecessors in interest, Royce International Investment Co. ("Royce"), was granted approval of General Plan Amendment 98-6, Change of Zone 98-7, Precise Plan/Conditional Use Permit 98-21 , and a Development Agreement entitled "Senior Housing Development Agreement Royce International", dated February 25, 1999 and approved by the City Council for the City of Palm Desert pursuant to City Ordinance No. 907 on February 25, 1999, as amended by City Ordinance No. 1075 adopted September 23, 2004 to reduce the minimum age limit set forth in said Senior Housing Development Agreement Royce International from 62 years of age to 55 years of age (collectively "Initial Development Agreement")(collectively "Prior Approvals"), which Prior Approvals provided for the development 72500.00791\7577720.1 on the Property of a health club and wellness resort for seniors, 288 apartments, 182 casita units, 161 bed skilled nursing facility, 150 bed assisted living facility and zone change to senior overlay (the "Initial Project'); and WHEREAS, pursuant to the Prior Approvals, in the intervening years 72 villa units and a clubhouse and related improvements (the "Clubhouse") were completed and construction of an additional 48 villa units was commenced; and WHEREAS, condominium plans were recorded against portions of the Property resulting in unapproved parcels and individual condominium units that were sold to the general public, and the terms of the Initial Development Agreement were not complied with by Royce; and WHEREAS, Owners have requested City to approve modifications to the Prior Approvals and related considerations, including a Conditional Certificate of Compliance to, among other things, confirm the prior subdivision of a portion of the Property ("COC"), a Tentative Tract Map, a modified Precise Plan, and this Amended and Restated Development Agreement, which shall collectively provide for the development of 311 units of independent living, assisted living, and/or skilled nursing on the Portola Parcel and up to 358 condominium units collectively on the VP Land Parcel and the VP Builders Parcel, without taking into account the 112 Excluded Units, all subject to a household age restriction of 55 years old (collectively the "Project') and WHEREAS, by electing to enter into this Agreement, City shall bind future City Councils of City by the obligations specified herein, and limit the future exercise of certain governmental and proprietary powers of City; and WHEREAS, the terms and conditions of this Agreement have undergone extensive review by City and the City Council and have been found to be fair, just and reasonable; and WHEREAS, the best interests of the citizens of the City and the public health, safety and welfare will be served by entering into this Agreement; and WHEREAS, City has found that the provisions of this Agreement and its purposes are consistent with the objectives, policies, and general land uses and programs specified in City's General Plan; and WHEREAS, all actions taken and approvals given by City have been duly taken or approved in accordance with all applicable legal requirements for notice, public hearings, findings, votes and other procedural matters in accordance with the Development Agreement Law and Development Agreement Procedures; and WHEREAS, all actions taken by the City have been duly taken in accordance with all applicable legal requirements, including the California Environmental Quality Act (Public Resources Code Section 21000, et seq.); and NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Owners (each herein sometimes called a "Party" and jointly the "Parties") do hereby agree as follows: 72500.00791\7577720.1 ARTICLE 1 GENERAL PROVISIONS 1.1 Binding Effect of Agreement. The Property is hereby made subject to this Agreement, which, with respect to the Property and only the Property, is intended to amend and restate the Initial Development Agreement. In the event of any conflict between the terms of this Agreement and the terms of the Initial Development Agreement, the terms of this Agreement shall control. Furthermore, and with respect to the Property only, the rights, interests, obligations and responsibilities of the Owners and the City, and any covenants, conditions or restrictions applicable to the Property, arising from or under the Initial Development Agreement, are replaced in their entirety by the rights, interests, obligations and responsibilities of the Owners and the City, and any covenants, conditions or restrictions applicable to the Property, as set forth herein. 1.2 Ownership of Property. Owners represent, covenant and warrant that they are the owners of fee simple title to their respective parcels comprising the Property as described in the above Recitals and as set forth on Exhibit "A-1" through Exhibit "A-K 1.3 Term. The term ("Term") of this Agreement shall commence on the Effective Date and shall continue for a period of ten (10) years thereafter unless this Term is modified or extended pursuant to the terms of this Agreement. So long as an Owner is not then in default of its obligations hereunder or under any agreement contemplated hereunder or otherwise with respect to any Project Approvals (as hereafter defined), and provided the Development Commitments (as hereafter defined) have been and, if applicable, continue to be satisfied and complied with, City agrees to reasonably consider an extension of the Term of this Agreement with respect to and upon the written request of such Owner for an additional five (5) year increment. Any such consideration by the City of an extension of the Term will require a determination by the City, in its sole discretion, that there has been no material change in the attendant facts and circumstances relating to the Project that would make or warrant a material change to the Project as currently contemplated advisable from the City's perspective. 1.4 Assignment, Sale and Transfer of Interest in parcels of the Property and this Agreement. Owners shall have the right to assign, sell or transfer their portion of the Property in whole or in part at any time during the term of this Agreement; provided, however, that any such assignment, sale or transfer to any party that is not (a) a member of the homebuying public, (b) Palm Desert Villa Portofino Homeowners' Association, a California non- profit mutual benefit corporation, being the homeowners' association previously established for the Project other than the Portola Parcel ("HOA" ), with respect to easements and common areas, or (c) a lender who will obtain a security interest in all or any portion of the Property (collectively and as so qualified, "Exempt Parties") shall include the assignment and assumption of the respective rights, duties and obligations of the assigning, selling or transferring Owner arising under or from this Agreement. Except as otherwise expressly contemplated hereunder, no sale, transfer or assignment of any right or interest under this Agreement to any party that is not one of the Exempt Parties shall be made unless made together with the sale, transfer or assignment of all or a part of the Property. Each Owner shall notify the City in the event of such Owner's sale or transfer of any portion of the Property to any party that is not one of the Exempt Parties. Failure to provide notice of sale or transfer when required hereunder shall be grounds for termination of this Agreement as it relates to the Owner in violation hereof, at absolute discretion of City. 72500.00791 \7577720.1 1.5 Amendment or Cancellation of Agreement. Except as otherwise provided herein, this Agreement may be amended or canceled in whole or in part only by written consent of all Parties in the manner provided for in California Government Code Section 65868; provided, however, City's Director of Community Development may, in his/her sole discretion, make and approve minor technical, non -substantive modifications to this Agreement as requested by an Owner so long as the other Owners and their portion of the Property will not be materially and adversely affected by such modification (the "Minor Modification Qualification"). 1.6 Termination. This Agreement shall be deemed automatically terminated and of no further effect upon the occurrence of any of the following events: 1.6.1 Expiration of the Term of this Agreement as set forth in Section 1.3. 1.6.2 Entry of a final judgment setting aside, voiding or annulling the adoption of the ordinance adopting this Agreement. 1.6.3 The adoption of a referendum measure pursuant to California Government Code Section 65867.5, overriding or repealing the ordinance adopting this Agreement. Except as provided under section 2.3.3, termination of this Agreement shall not constitute termination of any Development Approvals (hereinafter defined) granted for or applicable to the Project prior to such termination. Upon the termination of this Agreement, no Party shall have any further right or obligation hereunder, except with respect to: (i) any obligation to have been performed by such Party prior to such termination, (ii) any default in the performance of the provisions of this Agreement by such Party which occurred prior to such termination, or (iii) any obligations of such Party which are specifically set forth herein as surviving the termination of this Agreement. 1.7 Notices. (a) As used in this Agreement, "notice" includes, but is not limited to, the communication of notice, request, demand, approval, statement, report, acceptance, consent, waiver, appointment or other communication required or permitted hereunder. (b) All notices shall be in writing and shall be considered given either: (i) when delivered in person to the recipient named below; or (ii) on the date of delivery shown on the return receipt, after deposit in the United States mail in a sealed envelope as either registered or certified mail with return receipt requested, and postage and postal charges prepaid, and addressed to the recipient named below; or (iii) on the date of delivery shown in the records of the telegraph company after transmission by telegraph to the recipient named below; or (iv) on the date of delivery by facsimile transmission to the recipient named below. All notices shall be addressed as follows: If to City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attention: City Manager and City Attorney Telephone: (760) 346-0611 Facsimile: (760) 340-0574 72500.00791 \7577720.1 With a copy to: Best Best & Krieger LLP 74-760 Highway 111, Suite 200 Indian Wells, California 92210 Attention: City Attorney for City of Palm Desert Telephone: (760) 568-2611 Facsimile: (760) 340-6698 If to VP LandNP Builders: VP Builders, LLCNP Land, LLC c/o Family Development Group, Inc. 73081 Fred Waring Drive Palm Desert, California 92260 Attention: Rudy C. Herrera Telephone: (760) 900-8989 Facsimile: (760) 776-4422 With a copy to: VP Builders, LLCNP Land, LLC c/o Real Capital Solutions 371 Centennial Parkway, Suite 200 Louisville, CO 80027 Attention: Ryan Atkin Telephone: (303) 466-2500 Facsimile: (303) 466-4602 If to Country Club Drive Investors: Country Club Drive Investors, LLC 28071 Las Brisas Del Mar San Juan Capistrano, CA 92675 Attn: Jerry Robinson Telephone: (949) 240-7109 Facsimile: (949) 240-7109 (c) Any Party may, by notice given at any time, require subsequent notices to be given to another person or entity, whether a Party or an officer or representative of a Party, or to a different address, or both. Notices given before actual receipt of notice of change shall not be invalidated by the change. ARTICLE 2 DEVELOPMENT OF THE PROPERTY 2.1 Development Approvals. For the purpose of this Agreement, the term "Development Approvals" means the following entitlements issued or approved by City for development and/or use of the Project, as same shall be modified to provide for the Project, including the continued development, construction and sale of condominium units on the Property, and to provide for a unit age restriction of 55 years old within the Project: (a) GPA 98-6; CZ 98-7; PP/CUP 98-21; (b) The COC; 72500.00791 \7577720.1 (c) Tentative Tract Map 36404 (the "TTM"); (d) This Amended and Restated Development Agreement; and (e) Conditions of Approval, attached hereto as Exhibit "B". 2.2 Owner Commitments: As part of the Project, and in consideration for the Development Approvals, Owners have committed to certain improvements as set forth below in this Section 2.2 in conjunction with the development and construction of the Project ("Development Commitments"). The allocation of applicable costs and responsibilities for such Development Commitments as between the Owners, as applicable, has been or will be addressed by the Owners in a separate agreement. 2.2.1 Emergency Vehicle Access Road: Temporary improvements to the emergency vehicle access road on and across the Portola Parcel to Portola Avenue as required by PP 98-21 shall be completed in accordance herewith prior to the issuance of any additional building permits for the Project. The existence and use of such access road is contemplated by an existing easement between the Owners, which easement will be realigned by the Owners and set forth on Final Project Map (as hereafter defined). Such temporary improvements to the emergency vehicle access road may be constructed as a 24 foot wide roadway with one lane in each direction, and in any event shall comply with the requirements of the City's Director of Public Works and Fire Marshall, which requirements shall include, but not be limited to: (1) The driveway apron shall be fully improved; (2) A survey must be completed and approved to center the emergency vehicle access road on the property line; (3) Except as otherwise set forth herein, use of the emergency vehicle access road shall be limited to emergency vehicles and construction vehicles only, provided that use and access for construction purposes is subject to review by the City's Director of Public Works and may be revoked at any time, and further provided that (A) any construction traffic use of the emergency vehicle access road shall utilize transponders or other means to actuate the VDP Gate (as hereafter defined) for the passing of each construction vehicle, (B) the VDP Gate shall not be left open at any time, except for Fire Department emergencies, and (C) Designated Owner shall ensure that public traffic and residents do not use such emergency vehicle access road until permanent improvements have been installed in accordance herewith, at which time the emergency vehicle access road, as enhanced by the completion of the Secondary Access Permanent Improvements (as hereafter defined), may be utilized for purposes set forth in Section 2.2.3 herein. (4) A crash gate with a knox box shall be located where the emergency vehicle access road joins Villa Del Pellegrino (the "VDP Gate"); (5) The emergency vehicle access road must be designed and constructed to support an 80,000 lb. vehicle and shall be a minimum of 3 inches AC on compacted native soil; 72500.00791\7577720.1 (6) The bank along the north side of the emergency vehicle access road needs to be cut back 3/1; and (7) Improvement plans for the emergency vehicle access road shall be submitted, reviewed, and approved before construction takes place. 2.2.2 Amendment of CC&Rs: Designated Owner shall covenant and agree to be bound by the Second Amended and Restated Declaration of Condominium for Villa Portofino dated September 25, 2007 and recorded December 28, 2007 as Document No. 2007- 0769813 with the Riverside County Clerk and Recorder, as same has been modified prior to the Effective Date (the "Existing CC&R"s), pursuant to a recorded instrument in form and substance reasonably satisfactory to the City recorded prior to or concurrent with this Agreement and prior to the issuance of any additional building permits for the Project (the "CC&R Acknowledgement Obligation"). The CUR Acknowledgement Obligation shall require that Designated Owner execute any future amendment to the Existing CC&Rs to clarify the property ownership descriptions in the Existing CC&Rs. 2.2.3 Portola Avenue Improvements/Full Improvements to the Secondary Access: Concurrent with the recording of this Agreement and the Final Map applicable to the Project derived from and based upon the TTM ("Project Final Map"), Country Club Drive Investors will dedicate right-of-way along Portola Avenue and Country Club Drive to the City as required by the Development Approvals (such dedication and acceptance by the City being referred to herein as the "Portola Dedication"). The land that is the subject of the Portola Dedication is depicted on Exhibit "C" attached hereto (the "Portola Dedication Land"). Concurrent with the recording of the Project Final Map, each Owner will provide to the City and the Party performing the underlying work, a construction access easement with terms reasonably acceptable to the applicable Parties thereto, if and to the extent required, to provide for the construction of the Portola Improvements (as hereafter defined). Prior to the recording of the Project Final Map, Designated Owner shall enter into an Improvement Agreement with the City substantially in the form of Exhibit "D" attached hereto (the "Improvement Agreement"), which Improvement Agreement (a) shall address construction of (i) street improvements along Portola Avenue as required by the Development Approvals ("Portola Improvements"), and (ii) full improvements to the secondary access on and across the Portola Parcel to Portola Avenue as required by the Development Approvals ("Secondary Access Permanent Improvements"), and (b) shall be secured by a single improvement bond in the amount reasonably acceptable to the City securing the design and construction of the Portola Improvements and the Secondary Access Permanent Improvements in compliance with the Improvement Agreement (the "Improvement Bond"). Once the Secondary Access Permanent Improvements have been installed, any access and use restrictions set forth in Section 2.2.1 hereof shall no longer apply and the portion of such road on the Portola Parcel may be utilized by the Owners and their successors, assigns, contractors and invitees; provided, however, that the VDP Gate (or a replacement or enhancement thereof) shall not be removed and entry upon the VP Land Parcel and the VP Builders Parcel shall be restricted to the use and access for ingress and egress purposes of emergency and construction vehicles and for the use and access of the owners of all or any portion of the Property other than the Portola Parcel, and their successors, mortgagees, lessees, licensees, contractors, guests and invitees, for pedestrian, bicycle and vehicular (including construction vehicles) access, ingress and egress; provided, however, nothing herein shall be deemed to restrict the use of the Owner of the Portola Parcel and the successors, assigns, contractors and invitees of such Owner, and the residents of the Portola Parcel, for purposes other than access to the VP Land Parcel and the VP Builders Parcel. The 72500.00791\7577720.1 Parties intend that the Improvement Bond will be posted upon execution of the Improvement Agreement and Designated Owner agrees to utilize commercially reasonable best efforts to procure such Improvement Bond prior to the occurrence of the Portola Dedication; provided, however, that in the event that the bonding company rejects Designated Owner's application for such Improvement Bond because neither the City nor Designated Owner then own the Portola Dedication Land, as evidenced by a written notice of rejection of Designated Owner's underlying application for the improvement Bond from such bonding company, or if such bonding company requires that the Portola Dedication occurs before such Improvement Bond becomes active, City shall permit Designated Owner to procure the Improvement Bond in active form promptly following the occurrence of the Portola Dedication; provided, however, that no additional building permits shall be issued for the Project until such Improvement Bond is procured and active. 2.2.4 Bond per Improvement Agreement: The Improvement Agreement and the Improvement Bond shall provide, to City's satisfaction, for completion of the Portola Improvements and the Secondary Access Permanent Improvements by the date two (2) years after the Effective Date of this Agreement but in any event prior to issuance of any building or grading permits for the Portola Parcel not specifically related to the Portola Improvements and the Secondary Access Permanent Improvements. Ownership of all or any portion of the Portola Parcel shall not be transferred prior to the occurrence of the Portola Dedication. If the Portola Improvements and/or the Secondary Access Permanent Improvements are not completed in a timely manner by Designated Owner in accordance with the standards set forth in the Improvement Agreement, the City shall have the right to withhold building permits, certificates of occupancy, inspections, and plan check review with respect to the Project until such time as the Portola Improvements and the Secondary Access Permanent Improvements have been completed. The City shall have the right to use the applicable bond to complete the remaining/incomplete Portola Improvements and/or the Secondary Access Permanent Improvements, and upon completion, issuance of permits and certificates, and performance of inspections will resume. 2.2.5 Country Club Wall: The Project's perimeter wall along County Club Drive shall be repaired by the Party owning the underlying land before issuance of any additional building permits for the Project. The perimeter wall shall be extended along the Project's north property line to the adjoining City parcel (that has been developed as a fire station) by Country Club Drive Investors per plans approved by the City prior to the issuance of building permits for the Portola Parcel other than any such building permits that may be required in connection with the construction of the access road across the Portola Parcel or the Portola Improvements ("Country Club Wall Extension"). 2.2.6 Landscaping: Prior to issuance of any additional building permits for the Project, Designated Owner shall enter into a long-term landscaping maintenance agreement, in a form reasonably acceptable to the City, for maintenance of landscaping fronting the Project on Country Club Drive, including the median, and all retention basins within the Project (the "Landscaping Maintenance Agreement'). The Landscaping Maintenance Agreement may be assigned by Designated Owner to the HOA. Prior to the issuance of the first certificate of occupancy or completion for the Portola Parcel, Country Club Drive Investors shall enter into a long-term landscaping maintenance agreement, in a form reasonably acceptable to the City, for maintenance of landscaping fronting the Project on Portola Avenue (the "Portola Landscaping Maintenance Agreement'). 72500.00791\7577720.1 2.2.7 Signal Maintenance: Designated Owner has entered into a signal maintenance agreement providing that Owners will pay to the City twenty five percent (25%) of the costs related to energy, maintenance and repair of the traffic signal at Country Club Drive and Via Portofino/Palm Greens Parkway (the "Signal Maintenance Agreement"). The Signal Maintenance Agreement may be assigned by Designated Owner to the HOA. 2.2.8 Affordable Housing In -Lieu Payment: As an affordable housing in -lieu payment each Owner shall pay $1,166 per residential unit constructed on their respective portion of the Property prior to the City's issuance of a certificate of occupancy for or applicable to such unit(s) (the "In -Lieu Fee"); provided, however, that with respect to the Portola Parcel, the unit breakdown for which the In -Lieu Fee is due shall be as follows: Lot 3 of the Portola Parcel shall contribute the In -Lieu Fee for 75 units (Skilled Nursing) and Lot 4 of the Portola Parcel shall contribute the In -Lieu Fee for 80 units (Assisted Living). No additional In -Lieu Fee shall be due with respect to the Portola Parcel. 2.3 Rights to Develop. Subject to the terms, conditions, and covenants of this Agreement, each Owner's right to develop their portion of the Project in accordance with the Development Approvals (and subject to the Conditions of Approval) shall be deemed vested upon complete execution of (1) this Agreement, and (2) the Improvement Agreement, which vesting shall expire with respect to an Owner and their portion of the Property upon the earlier of the following occurrences: (a) termination of this Agreement with respect to such Owner pursuant to the terms hereof; (b) an uncured material default of this Agreement by such Owner; (c) an uncured material default under the Improvement Agreement, subject to the City providing notice to the Owner of such default and a reasonable cure period; or (d) as to a particular phase, parcel, or lot comprising a portion of the Project, the earlier of the final approved City inspection of the completed development on such phase, parcel, or lot, or the issuance by the City of a certificate of occupancy for the last improvement to be occupied on such phase, parcel, or lot. Additionally, (aa) in the event of and during the period of an uncured default under the Landscaping Maintenance Agreement or the Signal Maintenance Agreement, and subject to the City providing notice of such default and a reasonable cure period to the Owners, the City shall have the right to withhold building permits, certificates of occupancy, inspections, and plan check review with respect to the Project, and (bb) in the event of and during the period of an uncured default under the Portola Landscaping Maintenance Agreement, and subject to the City providing notice of such default and a reasonable cure period to Country Club Drive Investors, the City shall have the right to withhold building permits, certificates of occupancy, inspections, and plan check review with respect to the Portola Parcel. So long as this Agreement remains in full force and effect, and subject to the terms of the preceding sentence, City agrees with respect to the Project to issue building permits and certificates of occupancy and to conduct inspections and review plans and submittals in the ordinary course, and to cooperate with Owners with respect to satisfying any other approvals or authorizations required by the Existing Development Regulations (as hereafter defined) and any applicable New Laws (as hereafter defined). Except for the expiration set forth in clause (a) of the preceding sentence, the expiration of the vesting right set forth in the preceding sentence shall not terminate the obligations of Owners under this Agreement. Except as explicitly modified by this Agreement, and except as otherwise expressly provided herein, the Project shall remain subject to the following, to the same extent it would without this Agreement: (i) all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and 72500.00791\7577720.1 committees existing on the Effective Date of this Agreement (collectively, the "Existing Development Regulations"); (ii) all amendments or modifications to Existing Development Regulations after the Effective Date of this Agreement and all ordinances, regulations, rules, laws, plans, policies, and guidelines of the City and its City Council, Planning Commission, and all other City boards, commissions, and committees enacted or adopted after the Effective Date of this Agreement (collectively, "New Laws"), except such New Laws which would prevent or materially impair Owner's ability to develop and construct the Project in accordance with the Development Approvals, unless such New Laws are (A) adopted by the City on a City wide -basis, with no exceptions or grandfather clause of any kind applicable to similar developments, and applied to the Site in a non-discriminatory manner, (B) required by a non -City governmental entity to be adopted by or applied by the City to the Project (or, if adoption is optional, if the failure to adopt or apply such non -City governmental law or regulation and apply same to the Project would cause the City to be in violation of state of federal law, or to sustain a loss of funds or loss of access to funding or other resources or subject to any penalty not reimbursed in full by the Owners), or (C) New Laws that have been adopted by City Council as of the Effective Date but have not been finally approved by the Effective Date beyond any challenge or appeal period, but only to the extent the City specifically reserves the right to apply same to the Project under this Agreement. (iii) all subsequent development approvals and the conditions of approval associated therewith, including but not limited to any further site development permits, tract maps, and building permits; (iv) the payment of all fees or exactions in the categories and in the amounts as required at the time such fees are due and payable, which may be at the time of issuance of building permits, or otherwise as specified by applicable law, as existing at the time such fees and costs are due and payable; and (v) the reservation or dedication of land for public purposes or payment of fees in lieu thereof as required at the time such reservations or dedications or payments in lieu are required under applicable law to be made or paid. 2.3.1 Additional Applicable Codes and Regulations. Notwithstanding any other provision of this Agreement, the City also reserves the right to apply the following to the development of the Project: Building, electrical, mechanical, fire and similar building codes based upon uniform codes adopted in, or incorporated by reference into, the Palm Desert Municipal Code, as existing on the Effective Date of this Agreement or as may be enacted or amended thereafter, applied to the Project in a nondiscriminatory manner. In the event of fire or other casualty requiring construction of more than fifty (50%) percent of any building previously constructed hereunder, nothing herein shall prevent the City from applying to such reconstruction, all requirements of the City's Building, Electrical, Mechanical, and similar building codes based upon uniform codes adopted in, or incorporated by reference into, the Palm Desert Municipal Code, solely to the extent applicable to all development projects in the City. 72500.00791\7577720.1 This Agreement shall not prevent the City from establishing any new City fees on a City- wide basis and applied to the Project in a non-discriminatory manner on a go forward basis, including new development impact fees, or increasing any existing City fees, including existing development impact fees, and to apply such new or increased fees to the Project or applicable portion thereof where such new or increased fees may be charged. 2.3.2 Owners' Obligations Regarding Conditions of Approval. The Owners shall comply with the Conditions of Approval for the Development Approvals. Owners acknowledge that additional conditions of approval beyond those set forth in Exhibit "B" may be applicable to the Project if imposed in conjunction with future Project Approvals; provided, however, that no additional conditions of approval or restrictions arising in connection with any such future Project Approvals shall attach to, condition or restrict any portion of the Property unless the underlying Owner is a party to or consents in writing to the application or submittal to the City seeking any such future Project Approvals. An Owner's failure to comply with the Conditions of Approval as they relate to such Owner's Property shall be a material breach of this Agreement by such Owner and grounds for its termination with respect to such Owner and such Owner's portion of the Property pursuant to Section 3.3 hereof. 2.3.3 Grading Plans/Pad Heights. Owners shall submit precise grading plans for review and approval of the City. Pad elevations on the precise grading plans for the VP Land Parcel and the VP Builders Parcel shall conform to the range of elevations shown on the preliminary grading plans approved by the City Planning Commission. 2.4 Changes and Amendments. The Parties acknowledge that refinement and further development of the Project will require subsequent development approvals and may demonstrate that changes are appropriate and mutually desirable in the Development Approvals, except that minor modifications to the Development Agreement, as determined by the Director of Community Development to not be a substantial change in the proposed Project or conditions of approval, can be approved by the Director of Community Development. In the event an Owner finds that a non -minor modification in the Development Approvals is necessary or appropriate as same relates to their Property, then subject to the Minor Modification Qualification, such Owner may apply for a subsequent development approval to effectuate such change and City shall process and act on such application if consistent with the terms hereof except as otherwise provided by this Agreement. 2.5 Modification or Suspension by State or Federal Law. In the event that state or federal laws or regulations, enacted after the Effective Date of this Agreement, prevent or preclude compliance with one or more of the provisions of this Agreement, such provisions of this Agreement shall be modified or suspended as may be necessary to comply with such state or federal laws or regulations, provided, however, that this Agreement shall remain in full force and effect to the extent it is not inconsistent with such laws or regulations and to the extent such laws or regulations do not render such remaining provisions impractical to enforce. 2.6 Intent and Purpose. The Parties acknowledge and agree that City is restricted in its authority to limit its police power by contract and that the foregoing limitations, reservations and exceptions are intended to reserve to City all of its police power which cannot be so limited. This Agreement shall be construed, contrary to its stated terms if necessary, to reserve to City all such power and authority which cannot be restricted by contract pursuant to applicable law. 72500.00791 \7577720.1 The provisions of this Agreement and benefits to be received by City and Owners hereunder are in the best interests of City and the health, safety, morals and welfare of its taxpayers and residents and are in accordance with the public purposes set forth in federal, state and local laws and regulations, including California Government Code Section 565865. The Parties hereby acknowledge that implementation of this Agreement and the resulting development of the Property will result in substantial public benefits that justify City's decision to execute this Agreement. These benefits include, but are not limited to, furtherance of the goals and objectives of the City's General Plan applicable to the Property, and the strengthening of the City's land use and social structure by stimulating economic activity and job creation within the City. ARTICLE 3 REMEDIES 3.1 Remedies. Each of the Parties hereto may pursue any remedy at law or equity available for the breach of any provision of this Agreement. However, the City shall not be liable under any circumstances for monetary damages for any breach of this Agreement or for any cause of action which arises out of this Agreement. 3.2 Specific Performance/Self Help. The Parties acknowledge that although money damages are available to the City for a breach of this Agreement, such money damages and other remedies at law generally are inadequate and specific performance and other non -monetary relief, including temporary and permanent injunctive relief, are particularly appropriate remedies for the enforcement of this Agreement by any Party and should be available to such Party because it may be difficult and impracticable to determine the sum of money which would adequately compensate such Party for breaches of this Agreement; the Parties acknowledge and agree that any injunctive or equitable relief may be ordered on an expedited, priority basis. Additionally, each Owner shall have the right of self-help (including reasonable access rights) hereunder and under any agreements referenced herein to cure any default by another Owner herein or therein if such default by such other Owner would materially and adversely affect such non -defaulting Owner. In the event an Owner exercises such right of self help, the defaulting Owner shall reimburse the non -defaulting Owner for any and all costs associated with the exercise of such self help remedy upon demand, and the non -defaulting Owner shall have the right to record a lien on the defaulting Owner's portion of the Property to secure payment of such costs. 3.3 Termination. Subject to Section 4.8 hereof, the failure of an Owner to complete or satisfy in a timely manner the Conditions of Approval applicable to such Owner per section 2.3.2, or the Development Commitments applicable to such Owner, shall constitute a material breach of this Agreement and entitle the City to terminate this Agreement with respect to such Owner, at its absolute discretion, if such breach is not cured following notice of such breach and a reasonable opportunity to cure same (which cure period shall not be, in any event, less than 30 days). For the purposes of this section 3.3, the Development Commitments shall be deemed to apply to all of the Owner except that (a) the CC&R Acknowledgement Obligation shall not be deemed to apply to Country Club Drive Investors, and (b) the Country Club Wall Extension and any obligations arising from or in connection with the Portola Landscaping Maintenance Agreement shall not be deemed to apply to VP Land or VP Builders. 72500.00791\7577720.1 ARTICLE 4 MISCELLANEOUS PROVISIONS 4.1 Recordation of Agreement. This Agreement and any amendment or cancellation thereof shall be recorded with the Riverside County Recorder within the period required by Government Code Section 65868.5. 4.2 Entire Agreement. This Agreement sets forth and contains the entire understanding and agreement of the Parties with respect to the subject matter hereof, and there are no oral or written representations, understandings or ancillary covenants, undertakings or agreements which are not contained or expressly referred to herein. No testimony or evidence of any such representations, understandings or covenants shall be admissible in any proceeding of any kind or nature to interpret or determine the terms or conditions of this Agreement. 4.3 Severability. If any term, provision, covenant or condition of this Agreement shall be determined invalid, void or unenforceable, the remainder of this Agreement shall not be affected thereby to the extent such remaining provisions are not rendered impractical to perform taking into consideration the purposes of this Agreement. 4.4 Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California, without regard to conflicts of laws principles (if applicable). This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting Parry shall not be employed in interpreting this Agreement, all Parties having been represented by counsel in the negotiation and preparation hereof. 4.5 Time of Essence. Time is of the essence in the performance of the provisions of this Agreement as to which time is an element. 4.6 Waiver. Failure by a Party to insist upon the strict performance of any of the provisions of this Agreement by another Party, or the failure by a Party to exercise its rights upon the default of another Party, shall not constitute a waiver of such Party's right to insist and demand strict compliance by such other Party with the terms of this Agreement thereafter. 4.7 No Third Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit of the Parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 4.8 Force Majeure. No Party shall be deemed to be in default where failure or delay in performance of any of its obligations under this Agreement is caused by floods, earthquakes, other Acts of God, fires, wars, riots or similar hostilities, strikes and other labor difficulties beyond the Party's control, (including the Party's employment force), government regulations, court actions (such as restraining orders or injunctions), another Party's breach of this Agreement, or other causes beyond the Party's control. 72500.00791\7577720.1 Without limiting the generality of the foregoing, upon the issuance of a court order enjoining development of the Project incident to any legal proceeding by a third party to challenge the modifications to the Development Approvals as described in this Agreement or to challenge any action taken by City in connection therewith, the Term of this Agreement shall automatically be extended for the period equal to the period of the pendency of such order. 4.9 Mutual Covenants. The covenants contained herein are mutual covenants and also constitute conditions to the concurrent or subsequent performance by the Party benefited thereby of the covenants to be performed hereunder by such benefited Party. 4.10 Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the parties to this Agreement. All provisions of this Agreement shall be enforceable as equitable servitudes and constitute covenants running with the land. Each covenant to do or refrain from doing some act hereunder with regard to development of the Property: (a) is for the benefit of and is a burden upon every portion of the Property; (b) runs with the Property and each portion thereof; and (c) is binding upon each Party and each successor in interest during their ownership of the Property or any portion thereof. Notwithstanding the foregoing, this Agreement shall be deemed to have automatically terminated without any further actions required by any of the Parties upon (a) the closing of the sale of any condominium unit within the Project to a member of the homebuying public, but only with respect to such condominium unit and the buyer thereof, and (b) the conveyance of any Project common areas to the HOA, but only with respect to such Project common areas and the HOA. 4.11 Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. 4.12 Project as a Private Undertaking. It is specifically understood and agreed by and between the parties hereto that the development of the Project is a private development, that no Party is acting as the agent of any other Party in any respect hereunder, and that each Party is an independent contracting entity with respect to the terms, covenants and conditions contained in this Agreement. No partnership, joint venture or other association of any kind is formed by this Agreement with respect to any Parties hereto. The only relationship between City and Owners is that of a government entity regulating the development of private property and the owners of such property. 4.13 Further Actions and Instruments. Each of the parties shall cooperate with and provide reasonable assistance to the other to the extent contemplated hereunder in the performance of all obligations under this Agreement and the satisfaction of the conditions of this Agreement. Upon the request of any Party at any time, the other parties shall promptly execute, with acknowledgment or affidavit if reasonably required, and file or record such required instruments and writings and take any actions as may be reasonably necessary under the terms of this Agreement to carry out the intent and to fulfill the provisions of this Agreement or to evidence or consummate the transactions contemplated by this Agreement. The provisions of this section shall not require the taking of any actions which are prohibited by law or, except as expressly set forth in this Agreement, impair the lawful discretion of City as to those matters to which the law imparts discretion to City. 72500.00791\7577720.1 4.14 Attorneys' Fees. If legal action is brought by any Party against the others for breach of this Agreement, or to compel performance under this Agreement, the prevailing Party shall be entitled to an award of reasonable attorneys' fees and litigation costs in addition to all other relief to which it may be entitled. 4.15 Cooperation in the Event of Legal Challenge. 4.15.1 The filing of any third party lawsuit(s) against City or Owners relating to this Agreement, the Development Approvals or any other Project related approvals (collectively "Project Approvals") or other development issues affecting the Property shall not delay or stop the development, processing or construction of the Project or approval of any subsequent approvals, unless the third party obtains a court order preventing the activity. City shall not stipulate to or cooperate in the issuance of any such order. 4.15.2 In the event of any administrative, legal or equitable action instituted by a third party challenging the validity of any provision of this Development Agreement, the procedures leading to its adoption, or the Project Approvals for the Project ("Project Challenge"), each Owner and City shall have the right, in its sole discretion, to elect whether or not to defend such action on its own behalf. Except as otherwise expressly provided herein, Designated Owner shall defend, indemnify, and hold harmless the City (including its agents, officers and employees) from a Project challenge with counsel chosen by the City, subject to Designated Owner's approval of counsel, which shall not be unreasonably denied, and at Designated Owner's sole expense; provided, however, that the City shall be responsible for salaries, benefits, administrative and overhead expenses incurred by the City in connection with any such defense (the "Defense and Indemnity Obligation"). If the City is aware of such an action or proceeding, it shall promptly notify Owners and cooperate in the defense. Designated Owner upon such notification shall deposit with City sufficient funds in the judgment of City Finance Director to cover the expense of the Defense and Indemnity Obligation without any offset or claim against said deposit to assure that the City expends no City funds, and City Finance Director may require additional deposits if at any time the current deposits are insufficient to assure that the City expends no City funds (the "Defense Deposit Obligation"). Any such deposited funds not utilized by the City to defend a Project Challenge shall be promptly returned to Designated Owner. Notwithstanding the foregoing, neither Designated Owner nor VP Builders shall have any obligation or responsibility hereunder pursuant to the Defense and Indemnity Obligation or the Defense Deposit Obligation, in which case Country Club Drive Investors shall be solely responsible for satisfying the Defense and Indemnity Obligation and the Defense Deposit Obligation (and entitled to a return of any unused funds), if (i) neither VP Land nor VP Builders is then in default of any obligations under this Agreement or under any agreement contemplated hereunder or otherwise with respect to any Project Approvals, and (ii) such Project Challenge specifically involves and solely relates to the development of and/or the construction upon the Portola Parcel or was solely caused or created by the act or omission of Country Club Drive Investors (the "Designated Owner Exception"). If any Party elects to defend a Project Challenge, the Parties hereby agree to affirmatively cooperate in defending said Project Challenge and to execute a joint defense and confidentiality agreement in order to share and protect information, under the joint defense privilege recognized under applicable law. As part of the cooperation in defending a Project Challenge, the Parties shall coordinate their defense in order to make the most efficient use of legal counsel and to share and protect information. Each Parry shall have sole discretion to terminate its defense of a Project Challenge at any time. The City shall not settle any third party litigation of Project Approvals without Designated Owner's consent, which consent shall not be unreasonably withheld, 72500.00791 \7577720.1 conditioned or delayed, unless Designated Owner fails to deposit sufficient funds to assure defense and indemnity of the City. If Designated Owner is responsible hereunder for satisfying the Defense and Indemnity Obligation and the Defense Deposit Obligation because the Designated Owner Exception does not apply, Country Club Drive Investors, although not responsible to City hereunder for satisfying the Defense and Indemnity Obligation or the Defense Deposit Obligation, shall be responsible for reimbursing Designated Owner upon demand for 28% of the funds required from Designated Owner to satisfy the Defense and Indemnity Obligation and the Defense Deposit Obligation in accordance herewith before taking into account any reimbursement from other Owners (the "CCDI Reimbursement Obligation"), and VP Builders shall be responsible for reimbursing Designated upon demand for 36% (or as otherwise agreed to by VP Land and VP Builders) of such required funds, which obligations shall be secured by lien rights in favor of Designated Owner; provided, however, that -the CCDI Reimbursement Obligation shall not apply, and Country Club Drive Investors shall have no obligation or responsibility hereunder to the City or to VP Land nor VP Builders with respect to any aspect of the Defense and Indemnity Obligation and the Defense Deposit Obligation if (x) Country Club Drive Investors is not then in default of any obligations under this Agreement or under any agreement contemplated hereunder or otherwise with respect to any Project Approvals, and (y) such Project Challenge specifically involves and solely relates to the development of and/or the construction upon the VP Land Parcel and/or the VP Builders Parcel or was solely caused or created by the act or omission of VP Land and/or VP Builders. 4.16 Subsequent Amendment to Authorizing Statute. This Agreement has been entered into in reliance upon the provisions of the Development Agreement Law in effect as of the Effective Date. Accordingly, to the extent the subsequent amendment to the Development Agreement Law would affect the provisions of this Agreement, such amendment shall not be applicable to the Agreement unless necessary for this Agreement to be enforceable. (Signatures follow on next page) 72500.00791 \7577720.1 SIGNATURE PAGE TO VILLA PORTOFINO AMENDED AND RESTATED DEVELOPMENT AGREEMENT CITY: CITY OF PALM DESERT a California charter city a Its: ATTEST: 0 Rachelle D. Klassen, City Clerk APPROVED AS TO LEGAL FORM: BEST BEST & KRIEGER LLP By: Dave J. Erwin, City Attorney 72500.00791 \7577720.1 SIGNATURE PAGE OF OWNERS VILLA PORTOFINO AMENDED AND RESTATED DEVELOPMENT AGREEMENT VP Land, LLC, a Colorado limited liability company By: Family Financial, LLC, a Nevada limited liability company, its Manager in Rudy C. Herrera, Manager VP Builders, LLC, a Colorado limited liability company By: Family Financial, LLC, a Nevada limited liability company, its Manager A Rudy C. Herrera, Manager Country Club Drive Investors, LLC, a Delaware limited liability company By: Name: Title: 72500.00791 \7577720.1 STATE OF CALIFORNIA § COUNTY OF M On _, 2012, before me, (insert name) Notary Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. [SEAL] Notary Public, State of California STATE OF CALIFORNIA § COUNTY OF On _, 2012, before me, (insert name) Notary Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. [SEAL] Notary Public, State of California 72500.00791\7577720.1 EXHIBIT "A-1" TO VILLA PORTOFINO AMENDED AND RESTATED DEVELOPMENT AGREEMENT Legal Description of VP Land Parcel The land referred to herein is situated in the State of California, County of Riverside, City o_ PALM DESERT, and described as follows: PARCEL A: LOT 1 OF TRACT 29489, IN THE CITY OF PALM DESERT, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 311, PAGES 60 AND 61 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THOSE PORTIONS OF LOT 1 OF TRACT 29489 SHOWN AND DEPICTED ON THOSE CERTAIN CONDOMINIUM PLANS FOR VILLA PORTOFINO, FOR PHASES 1 & 3 RECORDED JANUARY 23, 2002 AS INSTRUMENT NUMBER 2002-038727 AND AMENDED DECEMBER 28, 2007 AS INSTRUMENT NUMBER 2007-0769812 (PHASE 1); AND NOVEMBER 30, 2004 AS INSTRUNIENT NUMBER 2004-0950249 (PHASE 3) ; ALL OF OFFICIAL RECORDS. ALSO EXCEPTING THEREFROM: [SEE FOLLOWING PAGE] 72500.00791 \7577720.1 EXHIBIT "A-1" continued ALSO EXCEPTING FROM PARCEL A: Units 73 through 112, being a portion of Lot 1 of Tract No. 29489, in the City of Palm Desert, as shown by Map on file In Book 311, Pages 60 and 61 of Maps, in the Ofitce of the County Recorder of Riverside County, California, as shown on the Condominium Plan for Phase 11 of Villa Portofino Project, recorded December 28, 2007 as Instrument No. 2007-770586 of Official Records of Riverside County. An undivided 40/40ths interest in and to the "Building Common Area" as shown In the Plan and more particularly defined In the Declaration. EXCEPTING THEREFROM 7HE FOLLOWING: A. Units 73 through 112 inclusive, as shown and defined In the Declaration and Flan above mentioned; and B. All of those certain "Exclusive Use Common Areas" more particularly shown and described In the Declaration and Plan above mentioned and reserved to particular units other than the unit described In and as Parcel 1 herein; and C. Excepting and reserving, however, the easements and rights of way described in the Declaration for the project and any exhibits attached thereto ("Declaration") recorded on January 23, 2W2 as Instrument No. 2002-038728 and amended and restated March 24, 2004 as Instrument No. 2004- 205858 and December 28, 2007 as Instrument No. 2007-0769813, all of Official Records of the County of Riverside, State of California. ., A non-exclusive easement for Ingress and egress and a non-exclusive easement and right to enter upon any portion of Lot 1 for the purpose of performing any duty or exercising any right of the Palm Desert Villa Portofino homeowners' Association under that certain Amended and Restated Declaration of Condominium recorded In the Office of the Recorder on March 24, 2004 as Instrument No. 2004-0205858 of Official Records ("Declaration"). This easement and right to enter Includes, without limitation, the right to enter the Members ommon Area, the Building Common Area and the Units. All of those non-exclusive rights appurtenant to Parcels 1 and 2 above for Ingress, egress and support, and all other purposes described In the Declaration and Plan above mentioned. Those certain exclusive Use Common Areas as defined by the above referinced Condominium Plan and Declaration appurtenant to Parcel 1 above. APN: 622-020-090.9 (Portion) PARCEL B: AN ACCESS EASEMENT FOR INGRESS AND EGRESS OVER AND ACROSS PHASE 1 OF THE VILLA PORTOFINO CONDOMINIUM PROJECT AS SET FORTH ON THAT, CERTAIN CONDOMINIUM PLAN RECORDED JANUARY 23, 2002, AS FILE NO. 2002- 038727 SAID EASEMENT WAS RECORDED AUGUST 31, 2006 AS INSTRUMENT NUMBER 2006-0646593, OF OFFICIAL RECORDS. 72500.00791\7577720.1 EXHIBIT "A-2" TO VILLA PORTOFINO AMENDED AND RESTATED DEVELOPMENT AGREEMENT Legal Description of VP Builders Parcel The land referred to herein is situated La the Stet$ of California, County of Riverside, City of Palm Desert, and described as follows: PARCE.. A: THAT PCIRTION OF LOT i AND A PORTION OF LOT A OFTRACT NO.29489. IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN DOOR 311 PAGES 60 AND 61 OF MAPS, IN THE OFFICE OF TIM COUNTY RECORDER OF SAID COUNTY AS SAID BOUNDARIES ARE SHOWN AND DEPICTED IN THAT CFRTAiN CONDOMD4 UM PLAN (-PLAN'-) FOR PHASE 3 OF VU LA PORTOMO PROJECT (-PROJECTT") RECORDED NOVEhMER 30, 2004 AS DOCUMENT NO.2004.950249, IN THE OFFICIAL RECORDS OF THE COUNTY OF RIVBRSIi?E, STATE OF t. ALIFOR),". PARCEL B: AN ACCESS EASEMENT FOR INGRESS AND RORESS OVER AND ACROSS PHASE I OF THE "VUJ A PORTOMNO CONDOMDMW PROJECT AS SET FORTH ON THAT CMRTAIN tODNGOMMUM PLAN RECORDED JANUARY 23. 2iN Z AS FUZ NO. 200-038727 SAID EASMENT" WAS RECORDED AUGUST" 31, 2006 AS INSTRUMENT NUMBER 2006- A6593, OF OFFK?AL RECORDS 72500.00791\7577720.1 EXHIBIT "A-3" TO VILLA PORTOFINO AMENDED AND RESTATED DEVELOPMENT AGREEMENT Legal Description of Portola Parcel The land referred to herein is situated in the State of California, County of Pdverside, City of Palm Desert, and desedbed as follows: THE POTION OF THE NORT14 HALF OF THE NORTHEAST QUARTER OF SECTION 8, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO AND MERIDIAN, CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: COMMENCING AT TIM 1N MSECTION OF THE WESTERLY LINE OF SAID NORTH HALF OF THE NORTHEAST QUARTER WITH THE SOUTH %ENE OF THE NORTH 44.00 FEET OF SAID NORTH HALF OF THE NORTHEAST QUARTER, THENCE NORTH 89°37'25" EAST ALONG SAID SOUTH LINE A DISTANCE OF 2060.13 FEET TO TEE TRUE P011\T OF BEGINNING; TFIENCE CONTMUING NORTH 89°37'25'F-AST ALONG SAID SOUTH LINE A DISTANCE OF 329.55 FEET TO TIM NORTHWEST CORNER OF THAT CERTAIN PARCEL OF LAND DEEDED TO THE CTiY OF PALM DESERT RECORDED MARCH 5,1986 AS INSTRUMENT NO.51057, OF OFFICIAL RECORDS AND RE -RECORDED SEPTEMBER. 24,1986 AS INSTRUMENT NO. 234 i 54,OF OFFICIAL RECORDS; THENCE SOUTH 0002T35" EAST ALONG THE WESTERLY LINE OF SAID CITY LAND A DISTANCE OF 51.00 FEETTO AN ANGLE POINT; THENCE SOUTH 45°07'38" EAST ALONG LAST SAID WESTERLY LINE A DISTANCE OF 238.94 FELT TO AN ANGIZ POINT; THENCE SOUTH 89°52'36" EAST ALONG THE SOUTH LDM OF SAID CITY LAND A DISTANCE OF 40.00 FEET TO A POINT ON TH WEST LDM OF THE EASTERLY 50.00 FELT OF SAID NORTH HALF OF THE NORTHEAST QUARTER; THENCE SOUTH 00007'20" WEST ALONG LAST SAID WEST LINE A DISTANCE OF 1060.61 FEET TO A POINT OF INTERSECTION OF SAID 'WEST LINE OF TB E EASTERLY 50.00 FEET WITH THE SOUTH LINE OF THE NORTH HALF OF THE NORTHEAST QUARTER OF SAID SECTION 8; THENCE SOUTH 89°41'07" WEST, ALONG LAST SAID SOUTH LINE A DISTANCE OF 170.00 FEET; THENCE NORTH 00°07'20" EAST, A DISTANCE OF 150.00 FEET; THENCE SOUTH 89*41'07" WEST, A DISTANCE OF 369.69 FEET; THENCE NORTH W07'20" EAST A DISTANCE OF 11.31.08 I = TO A POINT ON THE SOUTH LINE OF THE NORTBMLY 44.00 FEET OF SAID NORTH HALF OF THE NORTHEAST QUARTER, SAID POINT ALSO DENG THE TRUE POINT OF BEODWING. AS PER CERTIRCATE OF CCWLIANCE (WArvU OF PARCEL MAP PMW 00-23) RECORDED OCTOBER 24, 2001 AS INSTRUMENT NO.2001-518399, OF OFFICIAL RECORDS. APN: 622-020-086-6 (End of Legal Description) 72500.00791\7577720.1 EXHIBIT "B" TO VILLA PORTOFINO AMENDED AND RESTATED DEVELOPMENT AGREEMENT CONDITIONS OF APPROVAL CONDITIONS OF APPROVAL 2.7 CASE NOS. DA 11-516, PP 98-21 Amendment No. 2, and TTM 36404 DEPARTMENT OF COMMUNITY DEVELOPMENT: The development of the property shall conform substantially with exhibits on file with the Department of Community Development/Planning, as modified by the following conditions. 2. Prior to issuance of a building permit for construction of any use contemplated by this approval, the applicant shall first obtain permits and/or clearance from the following agencies: Coachella Valley Water District City Fire Marshal Public Works Department Evidence of said permit or clearance from the above agencies shall be presented to the Department of Building & Safety at the time of issuance of a building permit for the use contemplated herewith. 3. Prior to issuance of any additional building permits for the Project, Designated Owner shall enter into a long-term landscaping maintenance agreement, in a form reasonably acceptable to the City, for maintenance of landscaping fronting the Project on Country Club Drive, including the median, and all retention basins within the Project (the "Landscaping Maintenance Agreement"). The Landscaping Maintenance Agreement may be assigned by Designated Owner to the HOA. Prior to the issuance of the first certificate of occupancy or completion for the Portola Parcel, Country Club Drive Investors, successors and assigns, shall enter into a long-term landscaping maintenance agreement, in a form reasonably acceptable to the City, for maintenance of landscaping fronting the Project on Portola Avenue (the "Portola Landscaping Maintenance Agreement"). All to be consistent with the Property Maintenance Ordinance (Ordinance No. 801), the approved landscape plan, and the current addition of the City of Palm Desert Plant Maintenance Guide. 4. Access to trash/service areas shall be placed so as not to conflict with parking areas. The applicant shall contact Burrtec Waste and Recycling, Inc. to provide trash and recycling services that shall include the provisions of and operation of a 72500.00791\7577720.1 stinger/bin truck to maneuver the bins to a collection area above ground from within the underground service area. Depending on the location of the trash and recycle bins, the trash enclosures may be required and shall be consistent with the Palm Desert Municipal Code Chapter 8.12 and other conditions, such as number, size, and location of enclosures to accommodate the required number of bins. All bins or enclosures must be screened from public view. 5. All sidewalk plans shall be reviewed and approved by the Department of Public Works. 6. The applicant shall submit design development plans to the Architectural Review Commission before review of the construction drawings by the City. 7. All conditions of approval shall be recorded with the Riverside County Clerk's office.before any building permits are issued. Evidence of recordation shall be submitted to the Department of Community Development/Planning. 8. The Final Development Agreement shall be recorded within 40 days of final approval of the project by the City Council. 9. Prior to the City issuing any building permits for Lot 3 and Lot 4 on Tentative Tract Map 36404, the existing block wall on Country Club Drive shall be extended to the adjoining city owned fire station parcel. 10. Applicants shall defend, indemnify and hold harmless the city against any third party legal challenge to these approvals, with counsel chosen by the city at applicants expense. The defense obligation is described in more detail in the Amended and Restated Development Agreement. 11. None of these project approvals is valid until recordation of the certificate of approval and the Development Agreement. If a court voids any of the project approvals, including the Certificate of Compliance or Development Agreement, all of the development approvals shall be null and void. 12. The City Council approval of the Certificate of Compliance is to retroactively approve the prior unapproved subdivision of the property. 13. Developer shall enter into a recordable Development Agreement to memorialize these and other conditions placed on the project. DEPARTMENT OF PUBLIC WORKS: Prior to recordation of the Tract Map and any permits: 72500.00791 \7577720.1 1. The applicant shall not be placed on the agenda for the first reading of City Council until the preliminary WQMP is approved. 2. The final tract map shall be submitted to the Director of Public Works for review and approval. 3. Dedicate additional right of way for ultimate improvements at Portola Avenue secondary access as set forth as Lot B of the tentative tract map. 4. The final tract map shall dedicate an additional 11' of right-of-way along Country Club Drive for a total of 55' from center line as set forth as lot A thereon. 5. Reciprocal access easements and drainage easements between lots shall be provided for on the final tract map or in the CC&R's. 6. The final tract map shall provide for a public 20' pedestrian easement and a private 20' landscape easement within the 20' adjoining and along Portola Avenue, and a private 20' landscape easement along Country Club Drive, in addition to the street right of way noted above, as set forth on the tentative tract map. An additional public pedestrian easement may be required on Country Club Drive for any portion of sidewalk beyond 55-feet south of the street centerline. 7. Prior to City Council approval of the final tract map, the applicant shall construct or enter into a subdivision agreement and post security, in a form and amount acceptable to the City Engineer, guaranteeing the construction of all off -site improvements. Improvements, as specified in the Development Agreement, shall include: a. Improvements on Portola Avenue including, but not limited to, the installation of curb and gutter, asphalt paving, an 8' ADA compliant meandering sidewalk, and a deceleration lane. Design shall be per the approved site plan. b. Full Improvements of the secondary access. The construction of an emergency vehicle access road per section 2.21 of the Development Agreement shall be completed before issuance of any additional building permits for the project. 8. The emergency vehicle access road to Portola Avenue may be used by construction traffic through the use of transponders or other means to actuate the gates for the passing of each construction vehicle. The gates are not to be left open at any time, except for Fire Department emergencies. The applicant is responsible to ensure that public traffic and residents do not use this access road. Construction access on the emergency vehicle access road is subject to review by the Director of Public Works and may be revoked at any time. 72500.00791 \7577720.1 9. Access rights shall be restricted along Portola Avenue except at the "Secondary Access". 10. The construction of a block wall on Country Club Drive prior to issuance of any building permits for units within Lots 3 and/or 4. 11. Landscaping along Portola Avenue frontage shall be completed when development within Lots 3 and/or 4 occurs. 11. The applicant shall pay the appropriate signalization fee in accordance with City of Palm Desert Resolution Nos. 79-17 and 79-55 and drainage fee in accordance with Section 26.49 of Palm Desert Municipal Code and Palm Desert Ordinance Number 653. 12. The applicant will execute a recordable covenant agreeing to be bound by existing CC&R's and to execute future amendments. Prior to any further condominium plans being recorded, the applicant shall: 13. Record the final tract map. The condominium plans shall reference the final tract map recording information. 14. Submit a sample grant deed relative to the conveyance of the units, and the condominium plan, to the Public Works Department for review prior to the recording of any further condominium plans and related deeds. Prior to the issuance of grading permits the applicant shall: 15. Provide the City Engineer with evidence that a Notice of Intent (NOI) has been filed with the State Water Resources Control Board. Such evidence shall consist of a copy of the NOI stamped by the State Water Resources Control Board or the Regional Water Quality Control Board, or a letter from either agency stating .that the NOI has been filed. 16. Submit a final Water Quality Management Plan (WQMP) for approval. The WQMP shall identify the Best Management Practices (BMPs) that will be used on the site to control predictable pollutant runoff. Prior to the issuance of grading permit, the Operation and Maintenance Section of the approved final WQMP shall be recorded with County's Recorder Office and a conformed copy shall be provided to the Public Works Department. 17. Storm drain/retention area design and construction shall be contingent upon a drainage study prepared by a registered civil engineer that is reviewed and approved by the Department of Public Works. 72500.00791\7577720.1 18. Submit a PM10 application for approval. The applicant shall comply with all provisions of Palm Desert Municipal Code Section 24.12 regarding Fugitive Dust Control. 19. Submit precise grading plans for review and approval. Pad elevations on precise grading plans shall conform to the range of elevations shown on the preliminary grading plans approved by Planning Commission. 20. Identify all proposed and existing utilities on the precise grading plan. 21. Submit a landscape plan concurrently with the precise grading plan for review and approval. Applicants are advised to use the City of Palm Desert Design Guide when designing plans. Landscape plans must meet the following criteria: a. Must be water efficient in design and meet the City of Palm Desert's Water Efficient Landscape Ordinance. b. Planting plans must show location of proposed and existing utilities. c. Must match approved civil plans. d. All specs and details must be site specific. e. Applicants must have CVWD approval of their irrigation plans prior to City approval. f. Applicants must have a stamp or signature from the County Agricultural Commissioner before City approval. 22. Any deviation from the approved plans shall be reviewed for approval by the City Engineer prior to work commencing. 23. The applicant shall enter into a landscape maintenance agreement as specified in the Development Agreement. DEPARTMENT OF BUILDING AND SAFETY: Project must conform to the current State of California Codes adopted at the time of plan check submittal. The following are the codes enforced at this time: 2007 CALIFORNIA BUILDING CODE (Based on 2006 IBC) 2007 CALIFORNIA MECHANICAL CODE (Based on 2006 UMC) 2007 CALIFORNIA PLUMBING CODE (Based on 2006 UPC) 2007 CALIFORNIA ELECTRICAL CODE (Based on 2005 NEC) 2007 CALIFORNIA ENERGY CODE (Based on the 2008 Energy Efficiency Standards) 2007 CALIFORNIA BUILDING STANDARDS ADMINISTRATIVE CODE 2007 CALIFORNIA FIRE CODE 72500.00791\7577720.1 RIVERSIDE COUNTY FIRE DEPARTMENT: 1. The Fire Department requires the following fire protection measures be provided in accordance with the City of Palm Desert Municipal Code, 2007 California Building and Fire Codes with applicable NFPA and or any other nationally recognized Fire Protection Standards. The Fire Department shall set the minimum fire flow for the remodel or construction of al buildings per California Fire Code Appendix B. 2. The applicant shall provide a fire flow of 1500 gpm for a 1-hour duration at 20 psi residual pressure from a permanently installed Fired Hydrant before any combustible material is placed on the job site. 3. The applicant shall provided proof the existing water system is capable of providing the minimum necessary gpm fire flow for 2500 gpm for multifamily dwellings prior to any project approvals. 4. The applicant shall provide the required fire flow from a permanent wet Barrel Super Hydrant with 1-4" and 2-21/2" discharge outlets located not less than 25' and no more than 165' from any portion of a multifamily dwelling prior to any building permits approvals. 5. The applicant shall submit water plans to be reviewed and approved by the Fire Marshal and include verification that the water system is capable of providing the required fire flow. 6. The applicant shall install a complete NFPA 13 fire sprinkler system. This applies to all buildings with a 3000 square foot total cumulative floor area. The Fire Marshal shall approve the locations of all fire appliances including Post Indicator Valves, Fire Department Connections and Fire Hydrants. All Fire Appliances shall not be within 25 feet of a building and all Fire Department Connections shall be within 50 feet of a Fire Hydrant. 7. All valves controlling the water supply for automatic sprinkler systems and water - flow switches shall be monitored and alarmed per the 2007 California Building and Fire Code. 8. The applicant shall install a complete NFPA 72 Fire Alarm/Sprinkler Monitoring system as required by the 2007 California Building and Fire Code. 9. The applicant shall install portable fire extinguishers as per NFPA 10. The applicant shall install a minimum of 1-2A10BC Fire Extinguisher for every 3,000 square feet, 3' to 5' above grade with no more than 75' walking distance from any point of the business to the extinguisher. The applicant shall install a "K" class 72500,00791\7577720.1 fire extinguisher as required for commercial kitchens within 30' of the hazard area. 10. The applicant shall install a Hood/Duct Fire Suppression system as per NFPA 96 for all public commercial and private cooking operations with the exception of a single-family residence. 11. The applicant shall install an all weather Fire Department accessible roadway extending to any portion of the building where as a 150' hose lay can be utilized for the inaccessible building perimeter. Construction type of the same shall be approved by the Fire Marshal and be rated for 80,000 lbs. Turf block will not be accepted. Fire lane access roadway minimum width is 20' and height clearance is 13'6" Public roadway minimum unobstructed width is 36' with parking on both sides. A Fire Apparatus Turn around shall be provided for dead end streets in excess of 150' in length with approved cul-de-sac or hammer head dimensions. 12. Knox access devices shall be provided as follows: • A Knox Padlock for every manual gated entrance. 13. The applicant shall install an illuminated building address in accordance to the city standards for size and location. The building address shall be installed on the building in an unobstructed locale and the color shall be contrasting to background. 14. The applicant shall submit three sets of the following plans for review including tenant improvement: • Fire Alarm System • Sprinkler System • Fire Main Underground • Hood Suppression System • Site Plan to Scale 15. Conditions subject to change with adoption of new codes, ordinances, laws or when building permits are not obtained within 12 months. 72500.00791 \7577720.1 EXHIBIT "C" TO VILLA PORTOFINO AMENDED AND RESTATED DEVELOPMENT AGREEMENT DEPICTION OF PORTOLA RIGHT OF WAY DEDICATION (Lot "B" in the depiction on the following page below) 72500.00791\7577720.1 Uyum ., 0" ACC .. 1 i itk' PA3P, 7�6� :-,&-T T', ogoitiila tTlvl` rr •r� • PM, ME7 AT19M� T,1 *y vmf car. is' xt snmur.ilr'` a•p9 u t' D nrgcl t�1' "� I - I (" �, � crrtil �Mi�ir a U Tri�teL LLc t I 674 ACNI W� e+� ram` ' G !tl, s° rein I g ve.Au m Ot " Sit tAsbew « PKiI OR AM b IRISPPM tl�H6 71 iEur �,.'LOT URE PEN c" alezllw3 A, r + . �. ,y +a�.tre00,n7sOrW Al c�a. will .. .+ �lsiF_ifi ' LO 'E« LOT -W,. mm"040( °3ff pmrasm C1U lIT �IAll+�iN 3 t 'i44M MMC►ll 4CMWAL1 WALL � #' r GF I 72500.00791 \7577720.1 EXHIBIT "D" TO VILLA PORTOFINO AMENDED AND RESTATED DEVELOPMENT AGREEMENT FORM OF IMPROVEMENT AGREEMENT [Attached behind this page] 72500.00791\7577720.1 RECEIVED CITY CLERK'S OFFICE PALM DESEF 7. CA 2012 OCT 23 PM I : 36 October 19, 2012 Evelyn J. Ferrier, Chairperson Casablanca Architectural Committee 41533 Aventine Court Palm Desert, CA 92260 P. 760.469.2573 C. 425.591.9024 Robert A. Spiegel, Mayor City of Palm Desert City Hall 73-510 Fred Waring Drive Palm Desert CA 92260 P.760.346.0611 F.760.340.0574 Dear Mr. Spiegel, This letter is in regards to the City of Palm Desert's decision to place a 30-day hold on the Casablanca, Villa Portofino and Family Development legal agreement (i.e. attachment). I was saddened to hear that the agreement was not finalized as scheduled by the City of Palm Desert. I would like the City of Palm Desert to understand that Ms. Diana Plotkin does not represent or speak for me or my husband, who own a home directly adjacent to the future development site. Casablanca's elected executive board has done an excellent job of communicating with homeowners the crucial importance of staying involved by encouraging everyone to attend the joint city hall, Portofino, Family Development & Casablanca meetings. The board has always reached out to its residents to participate at the hearings, so they can openly voice their concerns and contribute any additional information that they think is of importance to all parties involved. Respectfully Mayor, I am not in support of holding up the finalization of this outstanding community effort to reach a legal agreement. If others, have failed to make an effort to stay involved over the years, it was their decision and had nothing to do with the way in which the governing board of Casablanca, Villa Portofino and Family Development leaders have conducted the process that successfully lead to an agreement. This is a great accomplishment by all who have worked so hard & tirelessly over many years to reach this final stage. I view this agreement as a model for how things can be accomplished in a transparent bi-partisan manner. I truly look forward to you, Mayor Robert Spiegel, and members of our city board, to approve this agreement. Sincerely, Evelyn J. P� r Cc. Jean M. Benson, Council Member ,t Trac D. Ferrier RECEDED 0 CITY LM CLERK' �EC � E C�Canca Owners Association 2012 OCT 23 PM 1' 36 NOTES FROM THE CASABLANCA BOARD... - Historic Agreement Made with Developer! As you know, a meeting was held on September 6, 2012 in the Clubhouse of Villa Portofino to discuss recent developments with Villa Portofino and Family Development. As the Board wanted to keep you all apprised of what transpired, below is a recap of the meeting, compliments of Syd Sonneborn. Casablanca President, Gail Christiansen and Rudy Herrera, a Principal of Family Development (Owner of a large portion of Villa Portofino) announced the creation of a legal agreement between the two Associations. This agreement which took almost 11 years to accomplish has now been signed and recorded with the County of Riverside. This is now a covenant and will run with the land. All future owners of Villa Portofino will have to agree and abide by its provisions. Some of the provisions outline that Villa Portofino will: ■ Control blow sand and perform continued maintenance, weeding and stabilization of the soil on the undeveloped land. ■ Maintain fencing around construction areas. ■ Provide "desert-scape" on North side of perimeter wall, including some trees. ■ Share in costs for the repair and maintenance of the perimeter wall between Villa Portofino and Casablanca. ■ Reduce the building pad heights to protect Casablanca's owners' privacy from Villa Portofino. Villa Portofino is hopeful to break ground for their first phase by Spring of next year. The west end of the building site (closest to the apartment complex on Country Club Drive) will be developed first. On September 18, 2012, Family Development will be meeting with the City of Palm Desert Planning Commission to present their revised building plans based on this Agreement. Due to the support provided by Villa Portofino, the Casablanca Board encourages all residents to join them in their supportfor the future development of the remaining land which is in the best interest of all involved and attend the above mentioned meeting. Looking forward to seeing you all soon, Casablanca Board of Directors c/o Desert Management 42-427 Rancho Mirage Lane, Rancho Mirage, CA 92270 Phone: 760-862-1202 1 Fax: 760-862-1210 1 E-mail: rdrews@desertmanagement.com